A Machine was purchased on 1 January 2018, on which date it was estimated to have...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A Machine was purchased on 1 January 2018, on which date it was estimated to have a useful life of s years and a nil residual value. The carrying amount on 31 December 2019 was as follows: Cost (1/1/2018) Accumulated Depreciation. Net Carrying amount (31/12/2019) Rs. 700,000 (300,000) Rs. 400,000 On the 1/1/2020, the remaining economic useful life was estimated to be 2 years. Required a) Calculate the effect of the change in accounting estimate using the reallocation method. b) Provide the necessary journals assuming that no depreciation journal had yet been processed for c) Provide the necessary journals assuming that the depreciation journal had already been processed for 2020 (i.e. before the change in estimate). A Machine was purchased on 1 January 2018, on which date it was estimated to have a useful life of s years and a nil residual value. The carrying amount on 31 December 2019 was as follows: Cost (1/1/2018) Accumulated Depreciation. Net Carrying amount (31/12/2019) Rs. 700,000 (300,000) Rs. 400,000 On the 1/1/2020, the remaining economic useful life was estimated to be 2 years. Required a) Calculate the effect of the change in accounting estimate using the reallocation method. b) Provide the necessary journals assuming that no depreciation journal had yet been processed for c) Provide the necessary journals assuming that the depreciation journal had already been processed for 2020 (i.e. before the change in estimate).
Expert Answer:
Answer rating: 100% (QA)
a To calculate the effect of the change in accounting estimate using the reallocation method we need ... View the full answer
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
Posted Date:
Students also viewed these accounting questions
-
Old Office Building Karas Investments owns a small office building in Windhoek, from which the company operates. The Windhoek office was purchased on 1 March 2019. Karas Investments decided to move...
-
Ignore taxation. CottonOff Ltd (CO) is a well-established retail company with a focus on providing fashion clothing and stationery brands. CO is known for putting their own twist on current trends to...
-
The Little Shop on the Corner had $243,000 in taxable income. Assuming that corporations face marginal tax rates, use these rates to calculate its income tax. Corporate tax rates Taxable income...
-
Assume C is a circle centered at the origin, oriented counterclockwise, that encloses disk R in the plane. Complete the following steps for the vector field F = (9y, - 2x). a. Calculate the...
-
A popular clothing manufacturer receives Internet orders via two different routing systems. The time between orders for each routing system in a typical day is known to be exponentially distributed...
-
Which, if any, of the following compounds can be prepared by an acetoacetic ester synthesis?Explain. (a) Br. (c) (b) CH CH - CH
-
Due to a nationwide recession, Amesbury Systems merchandise inventory is gathering dust. It is now October 31,2010, and the \($163,300\) that Amesbury Systems paid for its ending inventory is...
-
Easy Move Company made the following expenditures on one of its delivery trucks: Feb. 16. Replaced transmission at a cost of $3,150 July 15. Paid $1,100 for installation of a hydraulic lift Oct. 3....
-
A stock sells for $45 rights-on, new shares can be purchased at subscription price of $41 per share. Seven rights are required to purchase one share. (a)What is the value of a right? (b)What is the...
-
1. What is the cost of debt for Sunrise Bakery? 2. What is their cost of equity? 3. What is the WACC? 4. Which cost of capital should be used to evaluate the feasibility of the oven purchase? 5....
-
Explain how lead and lag indicators are used in a quality program to develop measurement systems and link your response with a SWEATT model. Definition and examples of lead and lag indicators Why...
-
Although he has shared with his co-worker that rubbing his shoulders and arms, calling him Babe in front of his co-workers, and pinching him is offensive, she continues to touch him in a way that...
-
What are the pros and cons of using employee referrals for recruiting workers?
-
Permanent layoffs should occur only as a last resort. Cutting staff affects morale, and ultimately the organization falters more. Organizations also have a social responsibility to their employees...
-
What specific constraints might prevent an HR manager from hiring the best candidate?
-
Explain the effects a learning organization may have on employees in todays organizations. What are the HRM implications of these effects?
-
By using the trees below compute Context resemblance for: book a) CR (Cq3, Cd2) =? b) CR (Cq3, Cd3) =? author Gates CR(Cq, Cd) = = book { Gates 94 0 book creator Gates cz book Bill author firstname...
-
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
-
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b....
-
The following is the balanced scorecard for Smith Company: a. Label each element of the balanced scorecard. b. Identify the companys overall strategic objective (i.e., the strategic objective that...
-
a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period...
-
A semicircular trough of corrugated steel, with diameter \(D=1 \mathrm{~m}\), carries water at depth \(y=0.25 \mathrm{~m}\). The slope is 0.01 . Find the discharge.
-
For a sharp-crested suppressed weir of length \(B=8.0 \mathrm{ft}\), \(P=2.0 \mathrm{ft}\), and \(H=1.0 \mathrm{ft}\), determine the discharge over the weir. Neglect the velocity of approach head.
-
A rectangular sharp-crested weir with end contractions is \(1.5 \mathrm{~m}\) long. How high should the weir crest be placed in a channel to maintain an upstream depth of \(2.5 \mathrm{~m}\) for...
Study smarter with the SolutionInn App